TripleGems Appraisal Services
Questions About Jewelry Appraisal
Fine Jewelry Appraisals and Consultations
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The jewelry business is a very lucrative industry. It is also an industry that is unregulated and susceptible to fraud, deception and ethics violation. One of our missions is to educate the public so that you can be a savvy individual equipped with right knowledge whether you are making a large or small purchase. Below are some questions that we have been asked as it pertains to buying, owning, selling and appraising a piece of jewelry.
1. What is an independent appraiser?
An independent appraiser is a professional whose primary business is appraising. Their appraisals are free from bias. They have earned their qualifications from recognized and respected educational institutions. They have had to go through extensive studies and have passed rigorous examinations in the gem and appraisal valuation field. They are the ones that are expected to uphold a level of public trust and are willing to provide an evaluation that is free from bias. Triple Gems Appraisal Services is an independent appraisal company. We provide you with an accurate and fair valuation of your jewelry based on facts only. Whoever hires us for our services will be assured that our opinions are based on facts , free from bias and we do not side with any party in the equation.
2. Who can appraise my jewelry?
Anyone can advertise and call themselves an "appraiser" because the jewelry industry is an unregulated industry.
An appraiser's qualifications are always important for insurers because if an appraiser is not properly qualified, how can an appraisal be trusted? There are only three things that count, and that you should be looking for - Gemological training, Appraisal training and an affiliation with an Appraisal society. There are only two recognized gemological training, and they are: -
a. G..G. (which stands for Graduate Gemologist) from the Gemological Institute of America. - It is an internationally respected degree that signifies superior training that is recognized around the world. An appraiser with a G.G. from the GIA has earned this credential through in-depth study and lab work with both diamonds and colored gems, and has passed a proctored, closed-book exam. Nevertheless, some unscrupulous appraiser will attach the words GIA under their signature. This is because they may have attended a one week course on-site or e-learning through the GIA. Beware of appraisers who call themselves GIA Diamond Graders, GIA Appraiser Qualified, GIA Graduate Appraiser. A diamond grader knows nothing about appraising, and GIA is not in the business of appraising.
b, FGA Fellow of Gemological Association of Great Britain. This is an equivalent of the G.G., issued by the Gemological Association of Great Britain, and the title holder has passed advanced courses in both gemology and diamonds .
Remember: Not all gemologists know how to appraise, and not all appraisers are qualified gemologist. You have to be both if you are a truly qualified jewelry appraiser. Triple Gems Appraisal Services has both certifications, and our competence and qualifications are fully backed by experience, ethics and standards of a professional. Get to know who your appraiser is by asking them for their qualifications. Ask to see if you could watch them appraise your jewelry in front of you and how long it takes.
3. Will my insurance company accept an appraisal from any appraiser?
Sure they will. Unless your insurance company (such as USAA) specifies to you that the appraiser should have at least a GIA Graduate Gemologist qualification, they will accept an appraisal from anyone, including Robin Rockhound. Keep in mind that there are four main people who handle your jewelry insurance at an insurance company; the frontline insurance agent, the underwriter, and the adjuster and subrogation. Your insurance agent will take whatever piece of paper you give them including receipts. They in turn, give it to the underwriter, who is the person who determines if the value placed on the piece of paper (inflated value or reasonable - doesn't matter at this point) is worth the company taking on the risk of insuring your jewelry (how often you wear it, where the jewelry is kept, and etc.). Based on a computerized actuarial calculation of insurance to value (ITV) they underwrite accordingly and set your premium. So all is good. When you need to replace the piece of jewelry the adjuster looks at your appraisal to make a determination for compensation. He can deny the claim outright if the value is over-inflated, or decide how much and how to compensate you based on your coverage. If your appraisal is not descriptive enough (comprised of 2-3 sentences), you will not get the quality, size and value of what you had before. It is also possible that the sum they compensate you may not be enough for the same quality you had due to economic adjustments in price of diamonds through the years if it was based on an older appraisal. A robust appraisal based on facts like ours is accepted and welcomed by every insurance company because they do not have to spend more time with subrogation to settle your claim. They have to compensate you according to the quality that is stated on the appraisal where possible (sometimes is not possible as some jewelry are purchased out of the country). An insurance company will very seldom give you the full amount of the appraised value in cash outright unless it is an insignificant sum to them or if you have an agreed value policy.
4. What is an inflated appraisal?
If you didn't pay that much for the piece of jewelry and you are given an appraisal at the time of purchase that is for a higher amount, it is an inflated appraisal. An appraisal is the record on file on which the insurance company will rely on to determine the value of your jewelry and the amount of premium you will be paying. At the end of the day, if your jewelry is over-valued, you are paying a lot more money for your premium. To determine if you have inflated appraisals, first go over all your appraisals to see if your jewelry has been appraised by a qualified independent appraiser (see definition above). He/She will know how to value your piece based on the market. An appraisal a jeweler gives you at the point of sale (not issued by an independent appraiser) showing an amount higher (sometimes twice or three times higher) than the price you paid is not in your best interest, even if you think you got a good deal off the retail ticket price. If your appraisals are older than 5 years or have not been done by a qualified appraiser, contact us to reappraise your items.
5. I have a lot of jewelry that I have purchased through the years. Do I need an appraisal for all of them?
We offer sorting services to help you determine if an item needs an appraisal. That also depends on your jewelry insurance policy. There is a limit or cap placed on the value of jewelry that is automatically covered in your homeowners insurance, and the insurance company may not require an appraisal for anything below the cap. Above and beyond that, you will have to get a separate coverage for your jewelry (called a rider, scheduled policy or personal articles policy) which will require an appraisal. Talk to your insurance agent and check out the questions to ask them click here
6. I purchased an item at a jewelry store and I received a free appraisal for it. Can I use it for my jewelry insurance?
Typically, a “free appraisal” is a sales tool to aid in the selling of a piece of jewelry you’re interested in. Some jewelry stores carry this to the Nth degree by telling customers that they will provide an appraisal value higher than the amount you actually paid for and that if something were to happen to your jewelry, your insurance company will give you cash based on their appraisal and you can go buy something else. You may think you got a great deal, but ultimately you are paying a higher premium because of the higher valuation. Truth of the matter is, insurance companies would rather replace your stolen or missing item with another comparable piece based on the description on the appraisal. If you purchased an item for less than shown on the appraisal, the company can deny your claim. (Stone v. Those Certain Underwriters at Lloyds of London). So it is very important to seek an independent appraiser to verify the quality of merchandise you purchased and get an accurate description of your jewelry for an unbiased valuation.
7. Can I use the diamond certificate issued by the lab that graded the diamond? It shows an appraised value of the diamond.
An independent third party lab is one that performs grading all day long, and nothing else. If you have a report that shows the appraised value of a diamond, then this lab cannot be independent. Although this document looks authoritative, this lab engages in providing an inflated sales price as a tool for the retailer to sell the diamond at a lower price. Therefore, an independent lab report should not contain any additional inserts have a valuation for the diamond. This is not an appraisal. An appraisal seeks to establish a value for an item based on market forces. A grading report does not evaluate a diamond's market value - only it's quality and inherent characteristics. With that said, a diamond certificate from a reputable lab showing only the inherent physical properties of the stone is invaluable to allow the appraiser to generate an accurate appraisal.
8. I had lost a ruby ring, and the insurance company replaced it with something that I am not happy with, but they said that it is a comparable ring to my ruby ring. Why did they not compensate me with another one of the same quality?
The insurance company relies on the description on the appraisal. A badly written appraisal will not allow the insurance company to accurately indemnify you and will not hold up in the court of law. Some terms like "pigeon blood red", "sky-blue", or "Columbian emerald" appear on an appraisal document as the color or quality description is used loosely and known in the trade. This is a sales tool pitch so you can visualize the quality in your mind. There are varying shades of red, and comparing a color based on the color of a pigeon's blood is ludicrous. Every vendor thinks highly of their merchandise and when come replacement time, the insurance company will order the replacement as stated in your appraisal. So one pigeon blood red color may not look like another pigeon blood red color - it is all subjective, depending who sells it. In the field of gemology, color description is very precise, standardized, and is an absolute. There can be no deviation from the color descriptive standard. Our appraisals are very descriptive, comprehensive and we adhere to the standards of the Gemological Institute of America (GIA) in our diamonds and colored stones grading. There is no question as to what your jewelry looks like or what it's quality is. In order to ensure that you are getting what you had you can always rely on us to assign the appropriate grade or validate that you are getting the same quality for your replacement. If you're at the point of being indemnified by your insurer and you're in doubt if you are getting the quality you had before, consult with us.
9. How much does an appraisal cost?
First of all, you should not choose an appraiser based on the cost of the appraisal. Anyone can call themselves an appraiser and you get what you pay for. An untrained appraiser in valuation principles will have several aspects lacking in the appraisal including not adhering to Jewelry Insurance Standards Organization (JISO) standards, particularly if you're seeking jewelry insurance coverage. When comes time for you to make a claim, you will realize that some appraisals will not make you "whole", Yes you saved money on the appraisal, but the appraisal will cost you a lot of money in the event of a claim because your indemnification is inadequate or your claim can be denied. And you cannot do a thing about it because the appraisal document did not give the proper description of the item, its quality and value. In our appraisal practice, we grade diamonds and gemstones and we have all the information recorded. If there is a dispute as to your claim, you can count on us to provide you with the facts.
Our appraisals are competitively priced, considering that you get the expertise of a qualified gemologist and appraiser. When seeking to get an appraisal, you should look at the qualifications, training, experience, professional affiliations of an appraiser and question if there is a potential conflict of interest or bias involved. Some appraisers charge a percentage of the appraised value. This is unethical practice.
In the overall scheme of things, you want to have an appraisal that has a comprehensive description of the item, its materials, how it was made, measurements, color grading, quality, confirmation of stone identification through a series of gemological tests, and a valuation that is supported by the correct market . Lastly, a good appraisal must have at least one photograph of the item and the appraisal should be signed by a Graduate Gemologist or Fellow of Gemological Association. Any other titles do not guarantee their knowledge to be qualified appraisers. At Triple gems Appraisal Services, we have all the standard gemological lab equipment for testing and identifying natural and synthetic gems to lab grown diamonds that may not be available elsewhere. These equipment will allow us to to spend the time to evaluate your jewelry pieces carefully. In our practice, cost of labor, quality and grade of gemstones and diamonds, authenticity, quality of workmanship, historical bearing, provenance, age, era, demand of a style or piece, or its maker are all important aspects that we take into consideration. We also have to carefully choose the correct market for valuation of a piece of jewelry to arrive at an appropriate value for its particular purpose and function. All this takes time to create a full report for your use.
We also offer sorting services for personal or estate functions - to determine if your jewelry is real or fake, help you to determine if a you want insurance coverage on particular items, and we clean your jewelry prior to appraisal. We will waive the fee for all this if you hire us to appraise at least one piece.
10. When I had my jewelry re-appraised at a jewelry store, I left my jewelry there with an old appraisal done by someone else. When I got my updated appraisal back, I was surprised to find the new appraisal was re-typed verbatim (same wording word for word) of the old appraisal and the only change was the value that got increased by a few thousand dollars.
It is not unusual when someone takes your money and did not do the job.
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